Money Doctor's sem: Gianandrea Nodari “Ruled by “Fear of floating” The Mexican exchange rate policy during the Interwar period, 1925-1936”

  • Date: –17:00
  • Location: via Zoom
  • Lecturer: Gianandrea Nodari (Geneva University)
  • Organiser: Department of Economic History / UCBH
  • Contact person: Anders Ögren
  • Seminarium

Money Doctor's Financial Stability (Online) Seminars

This paper addresses the motivation for the choices made regarding the Mexican exchange rate regime during the interwar period. Conventional accounts argue that Mexico escaped the Great Depression because its policymakers deliberately repealed the gold standard ideology. Accordingly, at the beginning of the 1930s, they let the peso float freely, in favour of a focus on the monetary policy of domestic objectives. Drawing on new archival data, I argue that national policymakers remained conservative with respect to any regime change, and their preference was always for a stable or pegged exchange rate. Overall, this paper claims that the practical choice of exchange rate regime was not driven by new theoretical insights, but was instead the result of a process of institutional learning and adaptation to a new national and international environment.